The loan from the Beijing-based bank would fund an
estimated six years of construction at the Hunters Point and
Treasure Island development sites, said the person, who asked
not to be named because the information was private. Work may
begin next year, the person said.

Redeveloping the former U.S. Navy bases would create two
new neighborhoods in a city short on housing, with prices on the
rise. Plans approved by San Francisco call for 10,500 homes at
Hunters Point and 8,000 residences on Treasure Island.

Lennar, based in Miami and the third-largest U.S.
homebuilder by revenue, is the majority investor in the groups
that control each development. The deal should be completed by
the end of the year, the person said.

Marshall Ames, a Lennar spokesman, declined to comment on
the loan. Feng Qihua, a Beijing-based spokeswoman for China
Development Bank, didn’t answer calls to her office and mobile
phone before normal business hours today.

San Francisco Mayor Edwin Lee “continues to be hopeful”
that Lennar will obtain the funding, Christine Falvey, a
spokeswoman, said in a text message. Lee said in August that the
builder would set final terms with the Chinese bank for a $1.7
billion loan by the end of this year.